By the numbers: Block’s gross payment volume (GPV) totaled $60.076 billion in Q3 2023, up 10% year over year (YoY), per its shareholder letter.
Gross profits for the quarter grew 21% YoY, hitting $1.90 billion. This is a deceleration from a 38% jump last year.
Some Q3 earnings highlights:
It’s not all good news: In Dorsey’s words, “The growth of the company has meaningfully outpaced the growth of the business.”
Block isn't the only payment provider worried about costs. PayPal also hinted at layoffs in its Q3 earnings.
The takeaway: With Dorsey back at the helm of Square, effective in October, we can expect major cost-cutting efforts and new strategic priorities. Block is diversifying to become less reliant on Cash App for growth, which should reinforce its strength in the long term.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a three-times-weekly recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
First Published on Nov 6, 2023
One Liberty Plaza9th FloorNew York, NY 100061-800-405-0844